The Cabinet of Ministers is streamlining permitting procedures for construction projects: what will change
24 April 22:50
The Cabinet of Ministers of Ukraine has launched a new phase of deregulation in the construction and reconstruction sectors. The government has approved a package of decisions aimed at simplifying permitting procedures for developers, shortening the time required to obtain documents, and providing businesses with greater certainty when launching projects. This was announced by Prime Minister Yulia Svyrydenko and the Ministry of Community and Territorial Development, according to "Komersant Ukrainian"
According to Yulia Svyrydenko, entrepreneurs most often complain about lengthy delays and a lack of real choice regarding where to obtain administrative services at the start of construction.
“Fewer unnecessary procedures and clear operating rules—this is the most common request we hear from entrepreneurs across the country. The government is launching a systematic deregulation effort for businesses. The first stage involves changes in the field of urban planning,” Svyrydenko said.
In response, the government is introducing a pilot mechanism that will allow the construction client to independently choose whom to contact for administrative services: the local State Architectural and Construction Control Authority (DABK) or the State Inspectorate of Architecture and Urban Planning of Ukraine (DIAM).
The goal of this decision is to create an alternative within the system and speed up the processing of documents.
How the new mechanism will work
In effect, the government is providing developers with an additional route for obtaining construction-related services. Previously, the procedure depended largely on the local level, but now some steps can be handled through the State Architecture and Urban Planning Inspection.
The Ministry of Community and Territorial Development calls this a step toward accelerating construction and reconstruction.
“A strong construction sector is the foundation for the rapid and high-quality recovery of communities. Our task is to ensure that permitting procedures are clear, predictable, and do not hinder project implementation. The adopted package of decisions changes the very logic of the sector’s operations and responds to modern challenges. The main goal is to create conditions for accelerating reconstruction, reducing risks for businesses, attracting investment, and developing the construction sector as one of the key drivers of the economy,” emphasized Deputy Prime Minister for the Reconstruction of Ukraine and Minister of Community and Territorial Development of Ukraine Oleksiy Kuleba.
It is specifically noted that the decision is aimed at reducing bureaucracy and cutting down on unnecessary procedures for businesses.
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What will change regarding urban planning conditions and restrictions
Another important innovation is the mechanism for appealing denials of urban planning conditions and restrictions (UPC). The Ministry of Community and Territorial Development explained that today this process takes an average of over 9 months, and more than a third of applications, according to the Unified State Electronic System for Spatial Planning (USESP), are denied.
At the same time, there was virtually no effective appeal mechanism, so even a formal or unfounded denial could block a project for a long time.
Now, such decisions can be appealed to DIAM. If the denial is deemed unfounded, design work can proceed in accordance with urban planning documentation without further delays.
The government calls this very tool one of the key steps to reducing the risk of administrative blocking of construction projects.
What is known about the state of the construction market
Against this backdrop, the construction market in Ukraine is already showing growth.
In 2025, the volume of Ukraine’s construction market grew by 24% and reached 248 billion UAH, or about 5.3 billion euros.
At the same time, this is still about 34% lower than in pre-war 2021, when the market was valued at €8 billion. In other words, the sector is recovering but is still far from its pre-war level.
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